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AB-705 Mobilehome parks: change of use.(2019-2020)

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Date Published: 02/19/2019 09:00 PM
AB705:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill No. 705


Introduced by Assembly Member Mark Stone

February 19, 2019


An act to amend Section 798.56 of the Civil Code, and to amend Sections 65863.7 and 66427.4 of the Government Code, relating to mobilehome parks.


LEGISLATIVE COUNSEL'S DIGEST


AB 705, as introduced, Mark Stone. Mobilehome parks: change of use.
Existing law, the Mobilehome Residency Law, requires the management of a mobilehome park to comply with notice and specified other requirements in order to terminate a tenancy in a mobilehome park because of a change of use of the mobilehome park, including giving homeowners at least 15 days written notice that the management will be appearing before a local governmental board, commission, or body to request permits for the change of use.
This bill would instead require the management to give homeowners at least 60 days’ written notice that the management will be appearing before a local governmental board, commission, or body to obtain local approval for the intended change of use of the mobilehome park and comply with other specified provisions. The bill would also require the local government to first make a finding that the approval of the closure of the mobilehome park and of its conversion into its intended new use will not result in, or materially contribute to, a shortage of housing opportunities and choices within the local jurisdiction for low-and moderate-income households.
Existing law, the Planning and Zoning Law, requires a person or entity proposing a change in use of a mobilehome park to file a report on the impact of the conversion, closure, or cessation of use upon the displaced residents of the mobilehome park that includes, among other things, the availability of adequate replacement housing in mobilehome parks and relocation costs. Existing law requires the person proposing the change in use to provide the report to a resident of each mobilehome park at least 15 days prior to the hearing on the impact report by the advisory agency or legislative body, and requires the legislative body or advisory agency to review the report prior to any change of use.
This bill would instead require that report to include a replacement and relocation plan that adequately mitigates the impact on displaced residents of the mobilehome park, as specified, and would require the person proposing the change in use to provide the report to a resident of each mobilehome park at least 60 days before the hearing. The bill would prohibit the legislative body from approving or conditionally approving the report unless the replacement and relocation plan demonstrates that it will enable each displaced mobilehome park resident to obtain and relocate into adequate housing in a mobilehome park, as specified. The bill would require the person or entity proposing certain changes of use of a mobilehome park to file a supporting certificate with the local government, under penalty of perjury, thereby imposing a state-mandated local program. The bill would specify that those statutory provisions that include requiring the report to be filed and provided to residents establish a minimum standard for local regulation of conversions of mobilehome parks and floating home marinas.
Existing law, the Subdivision Map Act, requires an impact report to be filed at the time of filing a tentative or parcel map for a subdivision to be created from the conversion of a mobilehome park or floating home marina to another use that, among other things, addresses the availability of adequate replacement space in mobilehome parks or floating home marinas, and requires the subdivider to make the report available to each resident of the mobilehome park or floating home marina at least 15 days prior to the hearing on the map by the advisory agency or legislative body.
This bill would instead require the report to include a replacement and relocation plan that adequately mitigates the impact on displaced residents of the mobilehome park or floating home marina, as specified, and would require the report to be made available to residents at least 60 days before the hearing. The bill would prohibit the legislative body from approving or conditionally approving the report unless the replacement and relocation plan demonstrates that it will enable each displaced mobilehome park or floating home marina resident to obtain and relocate into adequate housing in a mobilehome park or floating home marina, as specified.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 798.56 of the Civil Code is amended to read:

798.56.
 A tenancy shall be terminated by the management only for one or more of the following reasons:
(a) Failure of the homeowner or resident to comply with a local ordinance or state law or regulation relating to mobilehomes within a reasonable time after the homeowner receives a notice of noncompliance from the appropriate governmental agency.
(b) Conduct by the homeowner or resident, upon the park premises, that constitutes a substantial annoyance to other homeowners or residents.
(c) (1) Conviction of the homeowner or resident for prostitution, for a violation of subdivision (d) of Section 243, paragraph (2) of subdivision (a), or subdivision (b), of Section 245, Section 288, or Section 451, of the Penal Code, or a felony controlled substance offense, if the act resulting in the conviction was committed anywhere on the premises of the mobilehome park, including, but not limited to, within the homeowner’s mobilehome.
(2) However the tenancy may not be terminated for the reason specified in this subdivision if the person convicted of the offense has permanently vacated, and does not subsequently reoccupy, the mobilehome.
(d) Failure of the homeowner or resident to comply with a reasonable rule or regulation of the park that is part of the rental agreement or any amendment thereto.
No act or omission of the homeowner or resident shall constitute a failure to comply with a reasonable rule or regulation unless and until the management has given the homeowner written notice of the alleged rule or regulation violation and the homeowner or resident has failed to adhere to the rule or regulation within seven days. However, if a homeowner has been given a written notice of an alleged violation of the same rule or regulation on three or more occasions within a 12-month period after the homeowner or resident has violated that rule or regulation, no written notice shall be required for a subsequent violation of the same rule or regulation.
Nothing in this subdivision shall relieve the management from its obligation to demonstrate that a rule or regulation has in fact been violated.
(e) (1) Nonpayment of rent, utility charges, or reasonable incidental service charges; provided that the amount due has been unpaid for a period of at least five days from its due date, and provided that the homeowner shall be given a three-day written notice subsequent to that five-day period to pay the amount due or to vacate the tenancy. For purposes of this subdivision, the five-day period does not include the date the payment is due. The three-day written notice shall be given to the homeowner in the manner prescribed by Section 1162 of the Code of Civil Procedure. A copy of this notice shall be sent to the persons or entities specified in subdivision (b) of Section 798.55 within 10 days after notice is delivered to the homeowner. If the homeowner cures the default, the notice need not be sent. The notice may be given at the same time as the 60 days’ notice required for termination of the tenancy. A three-day notice given pursuant to this subdivision shall contain the following provisions printed in at least 12-point boldface type at the top of the notice, with the appropriate number written in the blank:
“Warning: This notice is the (insert number) three-day notice for nonpayment of rent, utility charges, or other reasonable incidental services that has been served upon you in the last 12 months. Pursuant to Civil Code Section 798.56 (e) (5), if you have been given a three-day notice to either pay rent, utility charges, or other reasonable incidental services or to vacate your tenancy on three or more occasions within a 12-month period, management is not required to give you a further three-day period to pay rent or vacate the tenancy before your tenancy can be terminated.”
(2) Payment by the homeowner prior to the expiration of the three-day notice period shall cure a default under this subdivision. If the homeowner does not pay prior to the expiration of the three-day notice period, the homeowner shall remain liable for all payments due up until the time the tenancy is vacated.
(3) Payment by the legal owner, as defined in Section 18005.8 of the Health and Safety Code, any junior lienholder, as defined in Section 18005.3 of the Health and Safety Code, or the registered owner, as defined in Section 18009.5 of the Health and Safety Code, if other than the homeowner, on behalf of the homeowner prior to the expiration of 30 calendar days following the mailing of the notice to the legal owner, each junior lienholder, and the registered owner provided in subdivision (b) of Section 798.55, shall cure a default under this subdivision with respect to that payment.
(4) Cure of a default of rent, utility charges, or reasonable incidental service charges by the legal owner, any junior lienholder, or the registered owner, if other than the homeowner, as provided by this subdivision, may not be exercised more than twice during a 12-month period.
(5) If a homeowner has been given a three-day notice to pay the amount due or to vacate the tenancy on three or more occasions within the preceding 12-month period and each notice includes the provisions specified in paragraph (1), no written three-day notice shall be required in the case of a subsequent nonpayment of rent, utility charges, or reasonable incidental service charges.
In that event, the management shall give written notice to the homeowner in the manner prescribed by Section 1162 of the Code of Civil Procedure to remove the mobilehome from the park within a period of not less than 60 days, which period shall be specified in the notice. A copy of this notice shall be sent to the legal owner, each junior lienholder, and the registered owner of the mobilehome, if other than the homeowner, as specified in paragraph (b) of Section 798.55, by certified or registered mail, return receipt requested, within 10 days after notice is sent to the homeowner.
(6) When a copy of the 60 days’ notice described in paragraph (5) is sent to the legal owner, each junior lienholder, and the registered owner of the mobilehome, if other than the homeowner, the default may be cured by any of them on behalf of the homeowner prior to the expiration of 30 calendar days following the mailing of the notice, if all of the following conditions exist:
(A) A copy of a three-day notice sent pursuant to subdivision (b) of Section 798.55 to a homeowner for the nonpayment of rent, utility charges, or reasonable incidental service charges was not sent to the legal owner, junior lienholder, or registered owner, of the mobilehome, if other than the homeowner, during the preceding 12-month period.
(B) The legal owner, junior lienholder, or registered owner of the mobilehome, if other than the homeowner, has not previously cured a default of the homeowner during the preceding 12-month period.
(C) The legal owner, junior lienholder or registered owner, if other than the homeowner, is not a financial institution or mobilehome dealer.
If the default is cured by the legal owner, junior lienholder, or registered owner within the 30-day period, the notice to remove the mobilehome from the park described in paragraph (5) shall be rescinded.
(f) Condemnation of the park.
(g) Change of use of the park or any portion thereof, provided:
(1) The management gives the homeowners at least 15 60 days’ written notice that the management will be appearing before a local governmental board, commission, or body to request permits for a change of use of the mobilehome park.
(2) After all required permits requesting a change of use permits that are required for the intended new use of the park have been approved by the local governmental board, commission, or body, the management shall give the homeowners six months’ or more written notice of termination of tenancy.
If the intended change of use requires no local governmental permits, then notice shall be given 12 months or more prior to before the management’s determination that a change of use will occur. The management in the notice shall disclose and describe in detail the nature of the change of use.
(3) The management gives each proposed homeowner written notice thereof prior to before the inception of his or her the tenancy that the management is requesting a change of use before local governmental bodies or that a change of use request has been granted.
(4) The notice requirements for termination of tenancy set forth in Sections 798.56 and 798.57 shall be followed if the proposed change actually occurs.
(5) The applicant has complied with all of other applicable state laws, including, but not limited to, the requirements of, the applicable, of either Section 65863.7 or 66427.4 of the Government Code.
(6) A finding has been made by the local government, pursuant to either Section 65863.7 or 66427.4 of the Government Code, that the approval of the closure of the park and of its conversion into its intended new use will not result in or materially contribute to a shortage of housing opportunities and choices within the local jurisdiction for low and moderate income households.

(5)

(7) A notice of a proposed change of use given prior to before January 1, 1980, that conforms to the requirements in effect at that time shall be valid. The requirements for a notice of a proposed change of use imposed by this subdivision shall be governed by the law in effect at the time the notice was given.
(h) The report required pursuant to either subdivisions (b) and (i) (k) of Section 65863.7 of or subdivision (b) of Section 66427.4 of the Government Code shall be given to the homeowners or residents at the same time that notice is required pursuant to subdivision (g) of this section.
(i) For purposes of this section, “financial institution” means a state or national bank, state or federal savings and loan association or credit union, or similar organization, and mobilehome dealer as defined in Section 18002.6 of the Health and Safety Code or any other organization that, as part of its usual course of business, originates, owns, or provides loan servicing for loans secured by a mobilehome.

SEC. 2.

 Section 65863.7 of the Government Code is amended to read:

65863.7.
 (a) Prior to Before the conversion of a mobilehome park to another use, except pursuant to the Subdivision Map Act (Division 2 (commencing with Section 66410) of Title 7), or prior to before closure of a mobilehome park or cessation of use of the land as a mobilehome park, the person or entity proposing the change in use shall file a report on the social and economic impact of the conversion, closure, or cessation of use of the park. The report shall include a replacement and relocation plan that adequately mitigates that impact upon the displaced residents of the mobilehome park to be converted or closed. In determining order to adequately mitigate the impact of the conversion, closure, or cessation of use on displaced mobilehome park residents, the report replacement and relocation plan shall address the availability of include a binding commitment to provide adequate replacement housing in mobilehome parks and relocation costs. the costs of obtaining and relocating to that housing.
(b) The person proposing the change in use shall provide a copy of the report to a resident of each mobilehome in the mobilehome park at least 15 60 days prior to before the hearing, if any, on the impact report by the advisory agency, or if there is no advisory agency, by the legislative body.
(c) When the impact report is filed prior to before the closure or cessation of use, the person or entity proposing the change shall provide a copy of the report to a resident of each mobilehome in the mobilehome park at the same time as the notice of the change is provided to the residents pursuant to paragraph (2) of subdivision (g) of Section 798.56 of the Civil Code.
(d) When the impact report is filed prior to before the closure or cessation of use, the person or entity filing the report or park resident may request, and shall have a right to, a hearing before the legislative body on the sufficiency of the report.
(e) (1) The legislative body, or its delegated advisory agency, shall review the report, prior to before any change of use, and may shall require, as a condition of the change, the person or entity to take steps to mitigate any adverse impact of the conversion, closure, or cessation of use on the ability of displaced mobilehome park residents to find obtain and relocate to adequate housing in a mobilehome park. The steps required to be taken to mitigate shall not exceed the reasonable costs of relocation. The legislative body, or its delegated advisory agency, shall not approve or conditionally approve the report unless the replacement and relocation plan demonstrates that, with the mitigation assistance that it provides or that can be imposed as conditions of approval, it will enable each displaced resident to obtain and relocate into adequate housing in a mobilehome park.
(2) For purposes of this section, the term “adequate housing in a mobilehome park” means an available mobilehome, or an available mobilehome space if it is determined that the displaced resident’s current mobilehome can be moved into it, that meets all of the following criteria:
(A) The mobilehome is decent, safe, and sanitary and located in a mobilehome park that is decent, safe, and sanitary.
(B) The mobilehome is adequate in size to accommodate the occupants.
(C) The mobilehome is located in a mobilehome park in which the displaced resident has the financial ability to pay the rents and charges of the park. The displaced resident has the financial ability to pay the rents and charges of the park only if their monthly housing costs, including their space rent, estimated average monthly utility costs, other monthly fees and charges of the park, and their monthly mortgage or purchase loan payment on their mobilehome will not exceed 33 percent of the displaced resident’s average monthly income.
(D) The mobilehome is comparable to the displaced resident’s current or prior mobilehome with respect to the number of rooms, habitable space, and type and quality of construction. A mobile home is comparable under this subparagraph if the principal features of the prior or current mobilehome are present. However, comparability under this subparagraph shall not require strict adherence to a detailed, feature-by-feature comparison, and the mobilehome is not required to possess every feature of the displaced mobilehome.
(E) The mobilehome is located in an area not subject to unreasonable adverse environmental conditions.
(F) The mobilehome is in a location generally not less desirable than the location of the displaced mobilehome park resident’s current mobilehome with respect to public utilities, facilities, services, and the displaced resident’s place of employment.
(f) If compliance with the requirements of subdivision (e) requires that a displaced resident must be provided with sufficient mitigation assistance to enable them to purchase a mobilehome comparable to the displaced resident’s current mobilehome, the amount of that assistance shall be presumed to equal the in-place value of the displaced resident’s current mobilehome. However, if the amount of the assistance necessary to enable the displaced mobilehome park resident to obtain that mobilehome exceeds the in-place value of the displaced resident’s current mobilehome, the person or entity proposing the change of use shall be required to pay to the displaced resident the actual reasonable costs of obtaining that mobilehome.
(g) If the person or entity proposing the change of use proposes to close the mobilehome park, or to cease using the land on which the park is located as a mobilehome park, without concurrently submitting an application for a new use of the park, then the report required by this section shall not be approved unless that person or entity demonstrate that the mobilehome park cannot continue to be operated as a rental mobilehome park, while earning a reasonable return on their investment, until the time that they are able to determine a new use for the mobilehome park and apply for its necessary local permits. To meet this burden, the person or entity proposing the change of use shall file a supporting certificate, under penalty of perjury, that states specifically articulable facts, that are supported by appropriate documentary or other evidence.

(f)

(h) If the closure or cessation of use of a mobilehome park results from the entry of an order for relief in bankruptcy, the provisions of this section shall not be applicable.

(g)

(i) The legislative body may establish reasonable fees pursuant to Section 66016 to cover any costs incurred by the local agency in implementing this section and Section 65863.8. Those fees shall be paid by the person or entity proposing the change in use.

(h)

(j) This section is applicable to charter cities.

(i)

(k) This section is applicable when the closure, cessation, or change of use is the result of a decision by a local governmental entity or planning agency not to renew a conditional use permit or zoning variance under which the mobilehome park has operated, or as a result of any other zoning or planning decision, action, or inaction. In this case, the local governmental agency is the person proposing the change in use for the purposes of preparing the impact report required by this section and is required to take steps to mitigate the adverse impact of the change as may be required in subdivision (e).

(j)

(l) This section is applicable when the closure, cessation, or change of use is the result of a decision by an enforcement agency, as defined in Section 18207 of the Health and Safety Code, to suspend the permit to operate the mobilehome park. In this case, the mobilehome park owner is the person proposing the change in use for purposes of preparing the impact report required by this section and is required to take steps to mitigate the adverse impact of the change as may be required in subdivision (e).
(m) This section establishes a minimum standard for local regulation of the conversion of a mobilehome park to another use, the closure of a mobilehome park, and the cessation of use of the land as a mobilehome park and shall not prevent a local agency from enacting more stringent measures.

SEC. 3.

 Section 66427.4 of the Government Code is amended to read:

66427.4.
 (a) At the time of filing a tentative or parcel map for a subdivision to be created from the conversion of a mobilehome park or floating home marina to another use, the subdivider shall also file a report on the social and economic impact of the conversion of the park or floating home marina. The report shall include a replacement and relocation plan that adequately mitigates the impact upon the displaced residents of the mobilehome park or floating home marina to be converted. In determining order to adequately mitigate the impact of the conversion on displaced mobilehome park or floating home marina residents, the report replacement and relocation plan shall address the availability of include a binding commitment to provide adequate replacement space housing in mobilehome parks or floating home marinas. marinas and the costs of obtaining and relocating to that housing.
(b) The subdivider shall make a copy of the report available to each resident of the mobilehome park or floating home marina at least 15 days prior to 60 days before the hearing on the map by the advisory agency or, if there is no advisory agency, by the legislative body.
(c) (1) The legislative body, or an advisory agency that is authorized by local ordinance to approve, conditionally approve, or disapprove the map, may shall require the subdivider to take steps to mitigate any adverse impact of the conversion on the ability of displaced mobilehome park or floating home marina residents to find adequate space obtain adequate housing in a mobilehome park or floating home marina, respectively. The legislative body, or its delegated advisory agency, shall not approve or conditionally approve the report unless the replacement and relocation plan demonstrates that, with the mitigation assistance that it provides or that can be imposed as conditions of approval, it will enable each displaced mobilehome park or floating home marina resident to obtain and relocate into adequate housing in a mobilehome park or floating home marina.
(2) For purposes of this section, the term ”adequate housing in a mobilehome park or floating home marina” means an available mobilehome or floating home, or an available space in a mobilehome park or floating home marina if it is determined that the displaced resident’s current mobilehome or floating home can be moved into it, that meets all of the following criteria:
(A) The mobilehome or floating home is decent, safe, and sanitary and located in a mobilehome park or floating home marina that is decent, safe, and sanitary.
(B) The mobilehome or floating home is adequate in size to accommodate the occupants.
(C) The mobilehome or floating home is located in a mobilehome park or floating home marina in which the displaced resident has the financial ability to pay the rents and charges of the park or marina. The displaced resident has the finacial ability to pay the rents and charges of the park or marina only if their monthly housing costs, including their monthly space rent, estimated average monthly utility costs and other monthly fees and charges of the park or marina, and any monthly mortgage or purchase loan payments on their mobilehome or floating home will not exceed 33 percent of the displaced resident’s average monthly income.
(D) The mobilehome or floating home is comparable to the displaced resident’s current or prior mobilehome or floating home with respect to the number of rooms, habitable space, and type and quality of construction. A mobilehome or floating home is comparable under this subparagraph if the principal features of the current or prior mobilehome or floating home are present. However, comparability under this subparagraph shall not require strict adherence to a detailed, feature-by-feature comparison, and the mobilehome or floating home is not required to possess every feature of the displaced housing.
(E) The mobilehome or floating home is located in an area not subject to unreasonable adverse environmental conditions.
(F) The mobilehome or floating home is in a location generally not less desirable than the location of the displaced resident’s current housing with respect to public utilities, facilities, services, and the displaced resident’s place of employment.
(d) If compliance with the requirements of subdivision (e) would require that the displaced mobilehome park or floating home marina resident must be provided with sufficient mitigation assistance to enable them to purchase a mobilehome or floating home comparable to the displaced resident’s current mobilehome or floating home, the amount of that assistance shall be presumed to equal the in-place value of the displaced resident’s current mobilehome or floating home. However, if the amount of the assistance necessary to enable the displaced mobilehome park or floating home marina resident to obtain an available mobilehome or floating home in another mobilehome park or floating home marina exceeds the in-place value of the displaced resident’s current mobilehome or floating home, the person or entity proposing the change of use shall be required to pay to the displaced resident the actual reasonable cost of obtaining that mobilehome or floating home.

(d)

(e) This section establishes a minimum standard for local regulation of conversions of mobilehome parks and floating home marinas into other uses and shall not prevent a local agency from enacting more stringent measures.

(e)

(f) This section shall not be applicable to a subdivision that is created from the conversion of a rental mobilehome park or rental floating home marina to resident ownership.

SEC. 4.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.